Warner Bros Discovery Sues NBA Over Media Rights Dispute

Warner Bros Discovery's sports division, Turner Broadcasting, has filed a lawsuit against the NBA for rejecting its matching bid for media rights. The NBA has awarded media rights to Disney, NBCUniversal, and Amazon, ending a long-standing relationship with Turner. The lawsuit centers around the interpretation of matching rights in their agreement.

Warner Bros Discovery and its sports division, Turner Broadcasting System, took legal action on Friday against the National Basketball Association (NBA) in New York. The lawsuit was filed over the league's rejection of Turner's matching bid for media rights. The media company claims that the NBA's refusal to honor its right to match offers from third parties breaches their agreement.

'We strongly believe this is not just our contractual right, but also in the best interest of fans who want to keep watching our industry-leading NBA content,' TNT Sports stated. However, NBA spokesman Mike Bass countered, saying Warner Bros Discovery's claims are 'without merit.'

The NBA announced an 11-year deal worth $77 billion with Walt Disney's ESPN, Comcast's NBCUniversal, and Amazon.com. This deal marks the end of nearly four decades of partnership with Turner after the next season. Turner argues that it has a significant investment in NBA content, which drives viewership and ad revenue, and that its bid matched Amazon's offer. The lawsuit might hinge on the interpretation of matching rights and the difference between streaming and traditional TV rights, experts say.

Analysts like Ross Benes from Emarketer and Douglas Arthur from Huber Research have weighed in on the possible outcomes, suggesting that the precedent for digital versus linear rights is not clear. Turner may also face financial challenges with the new deal's increased costs.

(With inputs from agencies.)